The foreign exchange market is a worldwide decentralized over-the-counter financial market for the trading of currencies. It is also referred to as “forex,” “FX,” or “currency market.” The purpose of the foreign exchange market is to assist international trade and investment by allowing businesses to convert one currency to another foreign currency. For example, it allows a U.S. business to import European goods and pay Euros, even though the income of the business is in U.S. dollars. A typical foreign exchange transaction involves a party purchasing a quantity of one currency by paying a quantity of another currency.
According to the U.S. Census Bureau figures for U.S. International Trade in Goods and Services, in 2009 the U.S. export market transacted over $1 Trillion worth of goods and services and the U.S. import market transacted over $1.5 Trillion. Foreign exchange transactions are required to facilitate this import/export market.
Entities who need to perform an individual foreign exchange transaction typically pay significant fees, as discussed in more detail below. The present invention provides a system that dramatically reduces the fees associated with such foreign exchange transactions.